Financial Chapter 7
Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards
. What would you like to do?
The process of presenting financial data about a co's financial position, its operating performance, and its flow of funds during a specified period of time.
A report that summarizes a co's financial situation or major monetary events and transactions.
A financial doc that lists insurer's revenue and expenses and shows if there was a profit or a loss.
Aka statement of operations or profit and loss statement.
An amt a co earns from its business operations.
The difference b/t revenue and expenses.
Positive net income (revenue greater than expenses)
negative net income; expenses greater than revenue
Lists values of a co's assets, liabilities and capital & surplus as of a specific date.
aka statement of financial position or statement of financial condition.
basic accounting equation
Assets = liabilities + capital and surplus
capital and surplus
On a balance sheet, the amount left after liabilities are subtracted from assets.
minimum capital standards - excess of an insurer's assets over its liabilities.
on a balance sheet - amt of $ invested in a co. by its owners, usually via purchase of stock.
The cumulative amount of money - calculated as assets minus liabilities and its capital - that remains in the company over time.
The owners' financial interest in the co.
aka capital and surplus
cash flow statement
fin. statement that shows cash receipts (cash inflows), cash disbursements (cash outflows), and net change in cash during a specific accntng period.
aka statement of cash flows
statement of owners' equity
Fin statement has info re changes in owners' equity b/t 2 sequential balance sheets.
A doc co's mngmnt sends to interested parties (stockholders, investors, etc) to report on co's financial performance in the last year; helps users assess a co's profitability.
A financial report that every insurer in the US must file annually and quarterly with the NAIC and the regulatory org in each state the insurer does business; helps regulators asses a co's solvency.
An accounting process that includes creating a financial plan of action designed to help an org achieve its goals.
A budgeting approach that begins at the top of a co and is passed down to lower level management.
A budgeting approach that starts at the bottom of a co., with lower level managers generating budgets for their areas, which are then presented in the form of recommendations to senior management.
zero-based budgeting (ZBB)
a budgeting approach where co. begins w/the premise that no resources will be allocated for the next accounting period unless and until ea expense is shown to be in accord with the co's strategic and operational goals.
A budget showing overall operating and financing plans for a co during a specified accntng period; formed by combining all of the individ budgets for ea dept.
aka comprehensive budget, corporate budget, or a performance plan
a budget that includes all of a co's core business operations; shows the revenue & expenses that a co expects during a specified acctng period.
A type of operational budget that indicates the amt of income from operations that a co expects in the coming budget period.
A type of operational budget that presents a schedule of expenses expected during an accounting period.
A budget that projects a co's beginning cash balance, cash inflows, cash outflows, and ending cash balance for a specified accounting period, typically by quarter.
cash receipts budget
A schedule of cash receipts (cash inflows) expected during an accounting period.
cash disbursements budget
A schedule showing the timing and amount of a ll cash disbursements (cash outflows) expected during an accounting period.
The process that co's do to analyze decisions about investing in long-term projects or assets.
A budget that shows a co's plans for the financial management of its long term, high cost investment proposals.
What would you like to do?
Home > Flashcards > Print Preview